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FIDELITY BANKERS POLICYHOLDERS GET OPPORTUNITY TO TRANSFER TO HARTFORD LIFE

 SIMSBURY, Conn., Feb. 17 /PRNewswire/ -- Starting today, 163,000 Fidelity Bankers Life Insurance Co. policyholders will begin receiving a special election notice package that allows them to transfer up to $4.3 billion in account value collectively to Hartford Life Insurance Co.
 The ability to transfer the annuity, life, accident and sickness insurance policies to Hartford Life follows 20 months of financial uncertainty for the policyholders as Fidelity Bankers has been in receivership for conservation and rehabilitation under the direction of Virginia Insurance Commissioner Steven T. Foster.
 "By shifting their policies to Hartford Life, most Fidelity Bankers customers will be eligible to receive compensation for the months their accounts were held in receivership," said Thomas M. Marra, Hartford Life vice president and director, Individual Annuities. "They'll also enjoy peace of mind knowing that their assets are protected by one of the strongest, most stable insurers in the country."
 Fidelity Bankers policyholders can shift their policies -- 93,000 of which are annuities -- to Hartford Life and receive 100 percent of their account values. Policyholders have until April 15 to decide if they want to participate in the rehabilitation plan, which is expected to take effect June 15.
 According to the rehabilitation plan, most Fidelity Bankers policyholders who shift their policies to Hartford Life may receive plan enhancements consisting of a plan credit and a plan dividend. The plan credit compensates policyholders for their inability to gain access to their account values and any loss of interest occurring during the receivership that began in May 1991.
 The plan dividend replaces account value lost due to the loss of interest and liquidity occurring in the seven years following receivership. It will be credited, to the extent assets are available, seven years after the effective date.
 Fidelity Bankers policyholders can also opt out of the plan and generally receive 85 percent of their account values in cash. The remaining 15 percent of account value would be issued as an annuity from a new mutual company to be formed under the Fidelity rehabilitation plan. Policyholders will not be able to cash out the opt-out annuities for two years.
 The execution of definitive agreements between Hartford Life and Virginia regulators on Feb. 10 opened the door for Hartford Life to assume and reinsure policies. In addition to the agreement with Hartford Life, Foster settled claims against Fidelity Bankers with First Capital Holdings Corp., Fidelity's parent company, and Citibank, First Capital's largest bankruptcy creditor. The settlements, however, are subject to approval by a federal bankruptcy court, and if approved, will dispose of all claims against Fidelity Bankers by the holding company.
 First Capital had opposed the rehabilitation plan with Hartford, arguing that its own plan was better. First Capital appealed Foster's rehabilitation plan to the Virginia Supreme Court. The court last month denied First Capital's request to suspend the rehabilitation plan pending the outcome of the appeal.
 Fidelity Bankers was placed in receivership by the Circuit Court of the City of Richmond on May 13, 1991. The court appointed the State Corporation Commission of the Commonwealth of Virginia as Receiver for Conservation and Rehabilitation for Fidelity Bankers.
 The Commission then appointed Foster as the company's deputy receiver, who in turn appointed Austin, Texas, lawyer Patrick Cantilo as special deputy receiver.
 In September 1992, the Commission approved Hartford Life's plan to assume and reinsure all Fidelity Bankers policies.
 Hartford Life, with more than $22.4 billion in assets and top financial ratings from Standard & Poor's, A.M. Best and Duff & Phelps, is a member of ITT Hartford Insurance Group, one of the largest and most stable financial institutions in the nation. With more than $39 billion in assets, ITT Hartford is a subsidiary of ITT Corp., a highly diversified manufacturing and services organization. ITT has operations across the globe and worldwide assets of more than $54 billion.
 -0- 2/17/93
 /CONTACT: Bob Nolan, ITT Hartford Insurance Group, 203-843-8820 (office), 203-673-7674 (home)/


CO: ITT Hartford Insurance Group ST: Connecticut IN: INS SU: FNC

DD -- NE009 -- 7301 02/17/93 11:47 EST
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Date:Feb 17, 1993
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